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If the LTV (loan-to-value ratio) is 75%, what is the haircut?
Suggested Answer: C
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12 comments · newest first
LA
Lajuana
3 days ago
Definitely C) 25%. Makes sense mathematically.
RE
Reynalda
8 days ago
Agreed! 75% LTV means 25% equity.
MA
Malinda
13 days ago
I think the haircut is 25%.
OS
Osvaldo
18 days ago
I thought it would be higher than that, honestly.
PE
Percy
23 days ago
Yup, 25% is correct. Simple math!
JE
Jeffrey
29 days ago
Wait, how does that even work? Seems off.
LY
Lynna
1 month ago
Totally agree, it's definitely C!
GE
Genevive
1 month ago
The haircut is 25% if LTV is 75%.
JA
Jackie
1 month ago
I believe the haircut is 25%, since it’s the difference from 100% minus the LTV of 75%.
JO
Josefa
2 months ago
I’m a bit confused; does a higher LTV mean a higher haircut? I might be mixing up the concepts.
CR
Craig
2 months ago
I remember practicing a question like this, and I think the haircut is the difference between 100% and the LTV.
CR
Cristy
2 months ago
I think the haircut is related to the LTV, but I'm not sure how to calculate it directly.